International rating agency Moody's changed the outlook on the credit rating of the Republic of Cyprus from "negative" to "positive", leaving it at "Saa3."
In March 22 released a statement the agency explained that the decision taken by the Cypriot authorities important steps to reduce the budget deficit and implementation of measures for fiscal consolidation in the stabilization program agreed in March last year with international lenders. It will provide the island of financial assistance amounting 10 billion euros in exchange for tough measures to restructure the banking sector, including the closure of the second largest Cyprus Popular Bank and the recapitalization of the largest on the island of Cyprus by the Bank "haircut" of uninsured deposits.
Budget deficit totaled 2013 5,4% compared with 6,4% in the previous year, the agency noted. Performing government commitments to international creditors in the face of the EU and the IMF gives grounds to strengthen confidence in the continued support of Cyprus, emphasized Moody's.
However, the agency warned that left unchanged the rating "Saa3" means that there is still "an increased risk of default on its obligations Cyprus or delays in the payment of debts in the medium term, given the high level of interdependence of economic, banking and fiscal risks that the country continues to face. " According to experts Moody's, in connection with the continuing threat of continuing recession in Cyprus.